Positioning View of McDonalds Competitive Advantage Essay

Positioning View of McDonalds Competitive Advantage - Essay Example According to the discussion McDonald’s emerges as a key player in the fast food industry and has worked relentlessly to attain a competitive advantage thereof.   The three major competitive strategies that a firm can follow include differentiation, focus, market segmentation, and low cost. In this sense, completive advantage can be conceived as the relative superiority in skills and resources. There are two major views of achieving competitive advantage, and they include resource-based view (RBV) and positioning view, which is construed as a consequence of RBV. In this discussion, the RBV and the portioning view will be defined with reference to the McDonald’s Company.This paper highlights that  resources and skills of a company are overly important as they are regarded as the major sources of competitive advantage. It is against this backdrop that the RBV is grounded and it proposes that in order to achieve competitive advantage, the assets and capabilities of a co mpany have presently scarce, not easily obtained in the market, non-substitutable and difficult to imitate besides furnishing economic value to the company. Whereas assets refer to the accumulated resource endowments of a company, capabilities are the skills that make it possible for the assets to be deployed in an advantageous manner. In regard to McDonald’s, the RBV of achieving competitive advantage is comprehended from the design and human resource dimension.